Cushman & Wakefield Releases Q2 Report for East Bay Oakland Office Market OAKLAND, Calif., July 23, 2019 – Cushman & Wakefield’s research department has released their second quarter 2019 market report for the East Bay Oakland office market. Below are the key findings from this report plus local expert commentary: VACANCY AND OCCUPANCY GROWTH BOTH ON UPSWING Vacancy in the East Bay Oakland office market was 10.5% at mid-year 2019, up modestly from a year ago, largely due to the new delivery of the 244,000-square-foot (sf) 2150 Webster building, that is unleased. Vacancy in the Oakland CBD was 10.3%, its first time above 10% in nearly five years. Keith Reichert, lead research analyst for Cushman & Wakefield’s Oakland office, said, “Despite a modest rise in vacancy, occupancy has increased by a significant 443,600 sf over the past year market wide, with the second quarter of 2019 achieving more than 200,000 [...]

(PRNewsfoto/Hackman Capital Partners, LLC) Sept. 10, ­­2018 -- Hackman Capital Partners, LLC, a Los-Angeles based real estate investment and operating company, announced today the purchase of 1300 64th Street in Emeryville, California. The property, which includes a 25,138-square-foot building and off-street parking lot, follows on the heels of the company's acquisition of a five-building portfolio, known as Emeryville Exchange, in June. Five of the now six buildings, including the recent purchase, are situated in Jelly Bean Square, which takes its name from the largest building's roots as the former Jelly Belly distribution center. The sixth building, called the Thoroughbred Building, is located approximately 10 blocks south of the square at 1250 53rd Street. "We're thrilled to be expanding our presence in this dynamic East Bay market," said Matt Landstrom, Vice President of Acquisitions for Hackman Capital. "With high demand and limited supply, Emeryville is quickly growing and evolving." According to Landstrom, the building at 1300 64th Street, [...]

by Derek Daniels Bandwidth of Tech Boom Powers SF Market Employment in San Francisco and the greater metropolitan division (San Francisco and San Mateo counties) continued to break records in Q3 2015. Non-office sectors have certainly been on the rise, with leisure & hospitality up 5.2% and construction and manufacturing up 4.8%. The real driver of the recent jobs boom, however, has been technology jobs, with computer systems design & related services (CSD) adding 12,200 positions or 20.9% year-over-year. In fact, CSD (70,500 positions) should overtake all of financial services (73,500 positions) in total job count by early 2016. Asking Rents Jump 5.2% The overall average asking rent for San Francisco jumped 5.2% in Q3 to close at a record high of $66.71 per square foot (psf), bypassing the previous record of $66.00 psf in Q4 2000. East SOMA took the crown for submarket with the highest asking rent [...]

By Cory Weinberg Reporter Uber Technologies Inc. will open a large office in Oakland, taking all of the workspace in the refurbished Sears building that will open in two years, according to a source with knowledge of the deal. The deal gives Uber all 330,000 square feet of the building. Uber made the deal official Wednesday morning, announcing it bought the building from Lane Partners, the building's owner, for an undisclosed price. For Oakland, the deal may ignite a real estate market that hasn’t seen a new office building built in over a decade and hasn’t gotten a bite of the region’s huge growth in $1 billion technology companies. It could also give investors more confidence to finance the construction of thousands of residential units that developers want to build. “Oakland just changed. Wow,” Chris Foley, a land broker in San Francisco and Oakland for Polaris Pacific, said when reached by [...]

Highest Per Key Price for a Holiday Inn Express Outside of New York City Cushman & Wakefield today announced that it represented ARE WCP MILL VALLEY HOTEL, LLC., in the previously announced sale of The Holiday Inn Express Mill Valley hotel, located in Marin County, just seven miles north of San Francisco. The buyer was a privately owned company based in Northern California. The transaction marked the highest per key price for a Holiday Inn Express branded hotel, outside of New York City. Central Bay Area Location Situated in one of the nation’s most vibrant, coveted and picturesque lodging markets, The Holiday Inn Express Mill Valley features many resort-style amenities. The hotel is located in immediate proximity to some of California’s most iconic attractions, including the Golden Gate Bridge, Muir Woods, Mt. Tamalpais and Sausalito. It is also positioned in the heart of The Bay Area’s most prosperous corporate demand [...]

By Robert Sammons Research Director, Northern California Economic Overview Private sector jobs for San Francisco have climbed to a record high of 922,500 as of May 2015, an increase of 39,400 (4.5%) year-over-year. The traditional office divisions recorded an increase of 25,200 positions or 6.9% over that same time period. Not surprisingly, the strongest subsector in office employment has been computer systems design & related services, which climbed by 10,000 positions or 18.2% to 64,800 year-over-year. The unemployment rate tumbled to 3.4% from 4.1% one year ago. Sublease Vacancy Up/ Leasing Activity Down The overall vacancy rate Citywide held steady at 6.4% in the second quarter. Year-over-year, vacancy has dropped 250 basis points (bps) from 8.9%. We feel the disparity between strong job growth and recent flat vacancy is due to two reasons - tenants that signed leases ahead of hiring and are now in the process of absorbing that [...]

The Google building on 8th Ave in Manhattan. Photo: Preston Gannaway, WSJ The Eschewing of Suburbia An interesting article recently appeared in the Wall Street Journal. Written by Eliot Brown, the story is one whose premise is not unfamiliar: Millennials continue to change the employment landscape of American cities and tech companies are leading the way in accommodating them. According to the article, especially technology companies are "eschewing suburban campuses for clusters in cities." Google in particular, is snatching up CBD office space voraciously and many of the other tech players are promptly following their lead. Urban campuses, filled with sweatshirt and jean wearing young professionals are likely to become more mainstream. Among other commercial real estate professionals, The Wall Street Journal interviewed Cushman's Executive Director J.D. Lumpkin, who advises landlords and tenants on office space in San Francisco. Lumpkin said tech companies want buildings clustered to [...]

Stanford Research Park Campus Sells for Record Price Cushman & Wakefield's San Francisco offices recently announced that it closed on the sale-leaseback of a 292,000-square foot office / R&D campus located at 3301-3307 Hillview Avenue in Palo Alto’s Stanford Research Park. Morgan Stanley’s Prime Property Fund purchased the property in what was the largest sale transaction in Palo Alto history. Universally recognized as the birthplace of Silicon Valley, Stanford Research maintains a world-renowned reputation for an unparalleled tenant base including the most innovative technology companies as well as many of the top law and financial services firms. TIBCO Software Cushman & Wakefield marketed the property on behalf of TIBCO Software Inc., a global leader in infrastructure and business intelligence software. Simultaneously with the closing of the sale, TIBCO signed a long term leaseback agreement with the new owner. As a definite sign of the times, the record price paid illustrates [...]

The view from Howard Street looking east at a proposed 5M high-rise December 12, 2014 Non Profits Splitting Town A San Francisco Business Times article recently revealed a rather interesting statistic: Approximately a quarter of the nonprofits in the City packed their bags and left town between 2011 and 2013. Business Times reporter Cory Weinberg interviewed Steven Wertheim, Project Manager at the San Francisco Planning Department, Peter Cohen, Co-Director of the Council of Community Housing Organizations and Cushman & Wakefield's Research Director Robert Sammons to get their insights on this trend. Among other things, Sammons said developers already feel the squeeze from the annual Prop. M office space cap, which could delay new projects starting in 2015. New fees would be a “slippery slope” to making office projects unfeasible, he said. Peter Cohen's take on the situation is that he feels we are in the midst of "a serious problem in the central city [...]

Cushman's Mary Davis and Sam Wasserstein with CEO of Habitat for Humanity Greater San Francisco, Phil Kilbridge - PHOTO: Miles Garnier Cushman & Wakefield Future Leaders Originating in San Francisco in 2006, the Cushman & Wakefield Future Leaders (CWFL) Annual Broker Bowl-A-Thon took place at The Presidio Bowl on Thursday, November 13th, 2014. Since its inception nine years ago, this iconic fundraiser benefitting Habitat for Humanity Greater San Francisco is considered a staple in the Bay Area commercial real estate community. In 2014, Cushman & Wakefield's goal was to surpass last year’s figures of $62,000 raised. Including the 2014 event, which raised $75,000, the Bowl-A-Thon has reached an aggregate amount of $437,000, which is donated directly to Habitat’s local Bay Area chapter. The annual CWFL Broker Bowl-A-Thon unites the highly competitive local commercial real estate community together for an evening of bowling, camaraderie, fierce competition and community [...]

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